Cocoapods doesn't work with shared pods: "Multiple commands produce error"

Question

Here is how the Podfile is structured:

# Uncomment the next line to define a global platform for your project
platform :ios, '13.0'

use_frameworks!

def common_pods
  pod 'Braintree'
  pod 'Braintree/Venmo'
end
  
target 'testAllCards' do
  common_pods
  pod 'Braintree/ApplePay'

end

target 'testSomeCards' do
  common_pods

end

The testAllCards target fails to build with this error: Multiple commands produce '/Users/xxxx/Library/Developer/Xcode/DerivedData/testFlurry-dswkraujlkgxwmdvcldydpsuplzu/Build/Products/Debug-iphonesimulator/XCFrameworkIntermediates/Braintree/PayPalDataCollector/PPRiskMagnes.framework'

It seems like a Cocoapod issue because when the same use case is tried with Braintree and Swift package manager it works.